WICKLOWE AUTOMATION LTD

Executive Summary

WICKLOWE AUTOMATION LTD is currently financially solvent but shows clear signs of declining liquidity and net assets, signaling early financial stress. The company should prioritize cash flow management and explore growth opportunities to prevent further erosion of its financial health. With targeted strategic actions, it can stabilize and potentially improve its financial outlook.

WICKLOWE AUTOMATION LTD - Analysis Report

Company Number: 12764690

Analysis Date: 2025-07-29 19:03 UTC

Financial Health Assessment: WICKLOWE AUTOMATION LTD

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1. Financial Health Score: C

Explanation:
WICKLOWE AUTOMATION LTD exhibits a modest financial position typical of a micro-entity in the manufacturing sector. The company maintains positive net assets and net current assets, indicating no immediate liquidity distress. However, there is a notable downward trend in both net assets and working capital over the last two years, which signals emerging financial strain. The absence of employees and minimal fixed assets suggest limited operational scale. The overall financial condition is stable but with symptoms indicating the need for careful monitoring and strategic action to prevent deterioration.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	315	420	Slight decline, indicating possible asset disposals or depreciation exceeding reinvestment.
Current Assets	2,628	7,142	Sharp reduction, a symptom of declining cash or receivables—may indicate cash burn or reduced sales.
Current Liabilities	1,644	3,175	Decrease in short-term obligations, possibly due to creditor repayments or renegotiations.
Net Current Assets (Working Capital)	984	3,967	Significant decrease, reducing the company’s buffer to cover short-term liabilities—a cause for attention.
Net Assets (Shareholders’ Funds)	1,300	4,388	Substantial decline, reflecting accumulated losses or withdrawals—weakening equity base.
Share Capital	1	1	Minimal capital invested, typical of micro companies, but limits financial flexibility.
Employees	0	0	No employees, indicating reliance on owner/director or outsourcing, affecting scalability and operational risk.

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3. Diagnosis

• Healthy Signs:
  The company remains solvent with positive net assets and net current assets, meaning it can meet short-term liabilities and holds residual value after debts. No overdue filings or legal distress signals are present, suggesting regulatory compliance and good governance.

• Symptoms of Distress:
  The sharp decline in current assets and net assets over two years resembles a "weakening pulse" in financial health. This indicates reduced liquidity and profitability pressures. The absence of employees may imply limited operational capacity or a business model focused on automation or subcontracting. The minimal fixed assets suggest low capital intensity but possibly limited ability to generate asset-backed financing.

• Underlying Issues:
  The company may be experiencing reduced sales, delayed receivables, or increased costs without proportional revenues. The shrinking equity base may limit future investment and increase vulnerability to external shocks. Without replenishing working capital or improving profitability, the company risks "financial fatigue" that could impair growth or survival.

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4. Recommendations

• Improve Cash Flow Management:
  Conduct a detailed review of receivables and payables cycles. Accelerate collections and negotiate extended payment terms with suppliers to bolster working capital.

• Enhance Revenue Streams:
  Explore new markets, diversify product offerings, or increase marketing efforts to reverse the decline in current assets indicative of falling sales or cash inflows.

• Cost Control and Efficiency:
  Examine overheads and operational expenses. Consider outsourcing non-core activities or leveraging automation to maintain lean operations without employees.

• Strengthen Capital Structure:
  Consider injecting additional capital or seeking external funding to replenish equity and provide a cushion for growth or unexpected expenses.

• Regular Financial Monitoring:
  Implement monthly financial reviews focusing on liquidity ratios and net asset trends to catch early symptoms of distress before they escalate.

• Strategic Planning:
  Develop a medium-term business plan addressing market positioning, investment needs, and risk mitigation to ensure sustainable financial health.

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